ByteDance rejects Microsoft’s takeover bid for TikTok, ‘chooses Oracle’

Microsoft is not acquiring the social media platform TikTok in the US from ByteDance. The takeover bid has been rejected according to Microsoft. Instead, ByteDance would choose Oracle as its ‘technology partner’, according to reports.

Microsoft reports that its offer for TikTok’s US operations has been rejected by ByteDance, owner of the social media platform. According to Microsoft, his acquisition would have been good for TikTok users and protect national security. “We would have made significant changes to ensure that the service would meet the highest standards of security and privacy and combat disinformation.” The company also says it is ‘looking forward’ to see how the service will perform in these areas.

According to sources from the Washington Post and the Wall Street Journal, ByteDance chooses Oracle as its “technology partner” and has proposed to the US government to retain ownership of TikTok and outsource cloud management of its data. Oracle would then probably take over data management for the US. Another part of the proposal would be to move ByteDance’s headquarters outside of China. With this, the company would like to allay the concerns of the US that the Chinese government can require mandatory access to TikTok data.

The U.S. government previously required ByteDance to sell or spin-off its U.S. TikTok business by September 20, due to national security concerns. The Chinese government then blocked the export of certain artificial intelligence techniques, probably including TikTok’s algorithms.